Supply Chain Insights LLC Copyright © 2015, p. 1 Sales and Operations Planning Study Summary Charts January 6 – September 14, 2015

Supply Chain Insights LLC Copyright © 2015, p. 2 Agenda  Study Overview  Sales & Operations Planning  Supply Chain Agility  Company Performance

Supply Chain Insights LLC Copyright © 2015, p. 3 Study Overview

Supply Chain Insights LLC Copyright © 2015, p. 4 Most Respondents Are Manufacturers, in Process Industries, and with $6B in Revenue on Average

Supply Chain Insights LLC Copyright © 2015, p. 5 Top Industries for Respondents Include Food & Beverage, Chemical, and Consumer Packaged Goods

Supply Chain Insights LLC Copyright © 2015, p. 6 The Majority of Respondents Work in a Supply Chain Role, Primarily at the Director or Manager Levels, and Are Based in North America or Western Europe

Supply Chain Insights LLC Copyright © 2015, p. 7 Agenda  Study Overview  Sales & Operations Planning  Supply Chain Agility  Company Performance

Supply Chain Insights LLC Copyright © 2015, p. 8 Performance Summary

Supply Chain Insights LLC Copyright © 2015, p. 9 Respondent Profile by S&OP Effectiveness

Supply Chain Insights LLC Copyright © 2015, p. 10 Respondent Profile by S&OP Effectiveness

Supply Chain Insights LLC Copyright © 2015, p. 11 Respondent Profile by S&OP Effectiveness

Supply Chain Insights LLC Copyright © 2015, p. 12 Over Two-Thirds Use “S&OP” to Describe the Process

Supply Chain Insights LLC Copyright © 2015, p. 13 Companies Have 4 Distinct S&OP Processes on Average

Supply Chain Insights LLC Copyright © 2015, p. 14 Just Over Half Consider Their Primary S&OP Process to Be Effective

Supply Chain Insights LLC Copyright © 2015, p. 15 Volunteered Reasons for Why Primary S&OP Process Is Effective

Supply Chain Insights LLC Copyright © 2015, p. 16 Volunteered Reasons for Why Primary S&OP Process Is Less Than Effective

Supply Chain Insights LLC Copyright © 2015, p. 17 Most Common Goal of S&OP Process Is to Match Demand with Supply

Supply Chain Insights LLC Copyright © 2015, p. 18 Those Who Report an Effective S&OP Are More Likely to Say the Goal Is to Determine the Most Profitable Plan

Supply Chain Insights LLC Copyright © 2015, p. 19 One Third Consider Their Primary S&OP Process to Balance the “S” and “OP”

Supply Chain Insights LLC Copyright © 2015, p. 20 Those Who Report an Effective S&OP Are More Likely to Report It Being Balanced

Supply Chain Insights LLC Copyright © 2015, p. 21 Two-Fifths Report Primary S&OP Process Is Executed at Least Most of the Time

Supply Chain Insights LLC Copyright © 2015, p. 22 Those Who Report an Effective S&OP Are More Likely to Report Executing Nearly All of the Time

Supply Chain Insights LLC Copyright © 2015, p. 23 Primary S&OP Processes Are Slightly More Aligned by Product; Typical Frequency Is Monthly

Supply Chain Insights LLC Copyright © 2015, p. 24 Spreadsheets Are the Most Common Technology Used and SAP Is Most Common Product Used

Supply Chain Insights LLC Copyright © 2015, p. 25 Spreadsheets and Forecasting Are Used More Often by Those Who Report an Effective S&OP

Supply Chain Insights LLC Copyright © 2015, p. 26 For Over Half, the Budget Is an Input to the S&OP Process but Does Not Constrain It

Supply Chain Insights LLC Copyright © 2015, p. 27 Those Who Report an Effective S&OP Are More Likely to Report Revenue Goals Are Determined by S&OP Output

Supply Chain Insights LLC Copyright © 2015, p. 28 Sales-Operations Collaboration Is Among Most Important and Top Performing Element of S&OP Processes

Supply Chain Insights LLC Copyright © 2015, p. 29 Managing Opportunities/Risk, and Managing Process Flow Show Greatest Performance vs. Importance Gaps

Supply Chain Insights LLC Copyright © 2015, p. 30 Those Who Report an Effective S&OP Rate It Highest on Sales-Operations Collaboration; Others Rate It Highest on CSR Goals

Supply Chain Insights LLC Copyright © 2015, p. 31 Most Common Challenge with S&OP Implementation Is Getting to Right Data in Timely Fashion

Supply Chain Insights LLC Copyright © 2015, p. 32 Those Who Report an Effective S&OP Report Having Fewer Challenges at Implementation Than Others

Supply Chain Insights LLC Copyright © 2015, p. 33 Vast Majority Believe Their Primary S&OP Process Is Important for Improving Supply Chain Agility

Supply Chain Insights LLC Copyright © 2015, p. 34 Those Who Report an Effective S&OP Are More Likely to Believe It Improves Supply Chain Agility

Supply Chain Insights LLC Copyright © 2015, p. 35 Agenda  Study Overview  Sales & Operations Planning  Supply Chain Agility  Company Performance

Supply Chain Insights LLC Copyright © 2015, p. 36 Most Common Definition of Supply Chain “Agility” Is the Ability to Adapt to Variations in Demand and Supply

Supply Chain Insights LLC Copyright © 2015, p. 37 Agility Performance Is 37% Lower Than Importance

Supply Chain Insights LLC Copyright © 2015, p. 38 Current Agility Is Perceived to Be Over Three Times Higher Than One Year Ago

Supply Chain Insights LLC Copyright © 2015, p. 39 Those Who Report an Effective S&OP Also Rate Their Agility Higher Today – Less So One Year Ago

Supply Chain Insights LLC Copyright © 2015, p. 40 Those Who Report an Effective S&OP Report 4.4X Higher Agility Than One Year Ago

Supply Chain Insights LLC Copyright © 2015, p. 41 Agenda  Study Overview  Sales & Operations Planning  Supply Chain Agility  Company Performance

Supply Chain Insights LLC Copyright © 2015, p. 42 Top Supply Chain Descriptors: Room for Improvement, Tactical, Many, Reactive, and Cautious

Supply Chain Insights LLC Copyright © 2015, p. 43 Top Supply Chain Strengths: Many and Controlled

Supply Chain Insights LLC Copyright © 2015, p. 44 Those Who Report an Effective S&OP Also Rate Themselves More Highly on Positive Characteristics

Supply Chain Insights LLC Copyright © 2015, p. 45 Sales & Marketing Is Among Most Important to Be Aligned and Most Aligned

Supply Chain Insights LLC Copyright © 2015, p. 46 Greatest Alignment Gaps Are with Operations & IT, Sales & Operations, Marketing & Finance, and New Product Development & Distribution

Supply Chain Insights LLC Copyright © 2015, p. 47 Those Who Report an Effective S&OP Are Also More Likely to Report Team Alignment in Most Areas

Supply Chain Insights LLC Copyright © 2015, p. 48 Two-Thirds Report That Their Company Is Doing Well at Meeting Corporate Goals

Supply Chain Insights LLC Copyright © 2015, p. 49 Those Who Report an Effective S&OP Are Also More Likely to Report Company Is Meeting Corporate Goals

Supply Chain Insights LLC Copyright © 2015, p. 50 Most Important Measurements to Meet Goals Include EBITDA, Operating Margin, Cash-to-Cash Cycle, and Days of Inventory

Supply Chain Insights LLC Copyright © 2015, p. 51 Most Commonly Tracked Measurements Include Operating Margin, Days of Inventory, Cost of Goods Sold, EBITDA, and Forecast Accuracy

Supply Chain Insights LLC Copyright © 2015, p. 52 Those Who Report an Effective S&OP Track More Measurements

Supply Chain Insights LLC Copyright © 2015, p. 53 Top Areas of Business Pain Are Demand/Supply Volatility, Data, Alignment, and Visibility

Supply Chain Insights LLC Copyright © 2015, p. 54 Those Who Report an Effective S&OP Are More Likely to Report Demand/Supply Volatility as a Top Business Pain